The correct net income for 2022 is $99,000.
Given,
In 2022, the Fennick Company reported a net income of $92,000.
Nevertheless, ending inventory was $7000 underestimated.
Since it is given that the closing inventory was understated.
It would mean that the net income will also be understated by the same amount.
Therefore to calculate the amount of correct net income we will add $7,000 which is the amount by which inventory was understated to the incorrect net income,
Which means, correct net income = incorrect net income + understated amount of ending inventory
correct net income = $92,000 + $7,000
= $99,000
Hence, the correct net income for the year 2022 is $99,000.
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